Dubai authorities plan to tighten control over rent increases in the coming months with new reforms. According to various media reports, the real estate sector is generally expected to see a boom at least in the coming few months until the beginning of 2014.
The new intentions were announced yesterday by Sultan bin Mejren, Director, Dubai Land Department. He said a new standard rent contracts would be enforced in late 2014.
In an interview with the Dubai-based Arabic language daily Emarat Al Youm, bin Mejren was asked whether the department intends to enforce a ceiling on Dubai rents. He said that the department is closely monitoring changes in the real estate and rent sector and plans a continuous review of any increase in rents.
“We also intend to introduce significant changes to the rent index to the results will be more accurate and offer a real indicator of the market. This index will be compulsory to all,” he said.
Bin Mejren also said a new unified rent contract would be enforced towards the end of 2014 within a new mechanism for the Dubai’s property sector. “There will be three main legislations that will be issued in the first quarter of 2014. They cover the relationship between the landlord and tenant, regulation of the relationships in the real estate sector and a mechanism for rent disputes,” he explained.
Bin Mejren also expressed an opinion that the new decision to set up a rent dispute resolution centre in Dubai would strengthen the property market in the medium and long term. The new centre is expected to push the rent sector into a new developed stage and support investment activities. “This centre will work to sharply cut time needed to settle disputes and there will be a judge to ensure immediate implementation.” He said the centre would conduct a review of fees involved in rent disputes, adding that “they would be fair to all parties.”
At present, rent-related relationships are in a state of chaos, as landlords push to increase rents as much as they can and often use unauthorized methods. Some try to evict tenants with false pretexts, because legally they can’t double the rents. All sorts of excuses are used, such as sale of the property or urgent need due to family issues. Tenants should defend their contracts and rights and not let landlords artificially increase rents.
Meanwhile, still a tremendous amount of ready-to-move-in properties remain unoccupied in all areas of Dubai.
